As previously reported, the Louisiana legislature passed House Bill 560 this year, which imposed a new tax on certain CBD products effective January 1, 2020.
Based on recent guidance released by the Department of Revenue (DOR), it’s now clear that the new tax is not applied at the point of retail sale. Rather, it’s properly paid by any “retailer making retail sales of eligible CBD products.” To that end, the guidance is explicit that the tax (unlike standard state and local sales tax) should not be passed on as an additional tax to the ultimate consumer.
The new DOR information release can be seen here, and includes additional information related to reporting requirements for obligated retailers.
